Breakthrough AgendaInvestors and asset managers interested in transition risks and opportunities related to climate scenario analysis and climate-aware Strategic Asset Allocation and ALM should keep an eye on the commitments made today under the Breakthrough Agenda. Forty countries have signed this Agenda, among them Nigeria, Egypt and India. The first steps are the Glasgow Breakthroughs – global goals that aim to make clean technologies and sustainable solutions the most affordable, accessible and attractive option in each emitting sector globally before 2030.
The Glasgow Breakthroughs are:
- Clean power is the most affordable and reliable option for all countries to meet their power needs efficiently by 2030.
- Zero emission vehicles are the new normal and accessible, affordable, and sustainable in all regions by 2030.
- Near-zero emission steel is the preferred choice in global markets, with efficient use and near-zero emission steel production established and growing in every region by 2030.
- Affordable renewable and low carbon hydrogen is globally available by 2030.
Other commitments that will have an impact on the transition pace of business and will have to be priced in by investors are:
The new Global Energy Alliance for People & Planet initiative which focuses on producing more clean electricity across the global south. It has a starting capital of 10 billion dollar from the World Bank, Rockefeller Foundation, Bezos Earth Fund and others.
Pension funds in action
Nordic and UK pension funds have collectively committed themselves to invest 130 billion dollar in clean energy and climate investments by 2030. Their commitment was announced by their CEOs on Tuesday. As part of this commitment, pension funds will also report annually on the progress of their climate investments.
The Compass - Climate & ESG Solutions
Thinking through the financial impacts of various climate risk scenarios and creating a net-zero roadmap may feel somewhat overwhelming. At Ortec Finance, we are here to help. Don’t hesitate to reach out to us, or take a look at our Climate & ESG solutions page.